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March 3, 2022

ConocoPhillips divests Indonesian assets to MedcoEnergi for $1.35bn

ConocoPhillips Indonesia Holding owns a 54% stake in the Corridor PSC, and a 35% interest in the Transasia Pipeline.

ConocoPhillips, a US-based hydrocarbon exploration company, has divested its Indonesian assets to Medco Energi Internasional (MedcoEnergi) for $1.35bn.

As per the deal signed in December 2021, MedcoEnergi acquired ConocoPhillips Indonesia Holding (CIHL) from Phillips International Investments, a unit of ConocoPhillips.

CIHL wholly owns ConocoPhillips (Grissik) (CPGL), the operator of the Corridor production sharing contract (PSC), with a 54% stake, and a 35% interest in the Transasia Pipeline.

Located onshore South Sumatra, the Corridor PSC comprises two producing oil fields, and seven producing gas fields.

Through the Transasia Pipeline, MedcoEnergi gains a minority stake in the gas pipeline network that serves customers across Central Sumatra, Batam, and Singapore.

In a press statement, MedcoEnergi said: “The acquisition of ConocoPhillips Indonesian Assets fits with the company’s strategy of owning and developing high quality and cash flow generating assets.

“It strengthens MedcoEnergi’s position as Indonesia’s leading independent energy and natural resources company, and reaffirms the company’s commitment to Indonesia’s national development.”

The assets sold to MedcoEnergi reported a production rate of 51,000 barrels of oil equivalent per day in 2021.

At the end of 2021, these assets had proved reserves of approximately 70 million barrels of oil equivalent, according to ConocoPhillips.

ConocoPhillips chairman and CEO Ryan Lance said: “We are proud of our half-century history in Indonesia and pleased that MedcoEnergi recognises the value of this business.

“This disposition is part of our ongoing effort to focus our investments across low-cost supply opportunities.”

In Vietnam, oil firm PetroVietnam said that Eni Vietnam, a unit of Italy’s Eni, plans to start drilling at the Dan Tranh-1X well, in offshore oil block 115/09, from late this month, reported Reuters.

The state-owned firm said it is planning to invite Essar to bid for other offshore blocks in the country, in this year or early next year.

Last month, ConocoPhillips announced that it had purchased an additional 10% stake in the Australia Pacific LNG (APLNG) project.

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